Data table A 4 que (Click on the icon here in order to copy the contents of the data table below into a spreadsheet) available: (1) The firm has estimated that its sales for 2020 will be $ (2) The firm expects to pay $35,900 in cash dividends in 2 (3) The firm wishes to maintain a minimum cash balanced (4) Accounts receivable represent approximately 19% of a (5) The firm's ending inventory will change directly with cha (6) A new machine costing $43,100 will be purchased in 2 (7) Accounts payable will change directly in response toch (8) Taxes payable will equal one-fourth of the tax liability o (9) Marketable securitius, other current liabilities, long-term a. Prepare a pro forma income statement for the year ende b. Prepare a pro forma balance sheet dated December 31 C. Analyze these statements, and discuss the resulting ext Red Queen Restaurants Income Statement for the Year Ended December 31, 2019 Sales revenue $799,500 Less: Cost of goods sold 599,200 Gross profils $200,300 Less: Operating expenses 100,500 Net profits before taxes $99,800 Less: Taxes (rate = 40%) 39.920 Net profits after taxes $59,880 Less: Cash dividends 20,900 To retained earnings $38.980 Pro Forma Income Statement Red Queen Restaurants for the Year Ended December 31, 2020 (percent-of-sales method) - $ $ Sales $ (Click on the icon here in order to copy the contents of the data table below into a spreadsheet) Red Queen Restaurants Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity Cash $31,900 Accounts payable $99,500 Marketable securities 18,300 Taxes payable 20,400 Accounts receivable 149,300 Other current liabilities 5,500 Inventories 99,300 Total current liabilities $125,400 Total current assets $298,800 Long-term debt S197,900 Net fixed assets 350,400 Common stock $150,900 Retained earnings $175,000 Total assets $649,200 Total liabilities and equity $649,200 $ Less: Cost of goods sold Gross profits Less: Operating expenses Net profits before taxes Less: Taxes (rate = 40%) : Net profits after taxes Less: Cash dividends $ $ $ $ $ $ $ $ To Retained earnings $ $ Print Done Next question Integrative-Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other ......... here to prepare the financial plans. The following financial data are also available: (1) The firm has estimated that its sales for 2020 will be $900,000. (2) The firm expects to pay $35.900 in cash dividends in 2020. (3) The firm wishes to maintain a minimum cash balance of $30,300. (4) Accounts receivable represent approximately 19% of annual sales. (5) The firm's ending inventory will change directly with changes in sales in 2020. (6) A new machine costing S43,100 will be purchased in 2020. Total depreciation for 2020 will be $16.900. (7) Accounts payable will change directly in response to changes in sales in 2020 (8) Taxes payable will equal one-fourth of the tax liability on the pro forma income statement. (9) Marketable securities, other current liabilities, long-term debt, and common stock will remain unchanged. a. Prepare a pro forma income statement for the year ended December 31, 2020, using the percent-of-sales method. b. Prepare a pro forma balance sheet dated December 31, 2020, using the judgmental approach. -I-------------------------------------------- Pro Forma Income Statement Red Queen Restaurants for the Year Ended December 31, 2020 (percent-of-sales method) Sales $ $ % $ $ % Less: Cost of goods sold Gross profits Less: Operating expenses Net profits before taxes Less: Taxes (rate=40%) Net profits after taxes Less: Cash dividends $ $ $ $ To Retained earnings $ available: (1) The firm has estimated that its sales for 2020 will be $900,000. (2) The firm expects to pay $35,900 in cash dividends in 2020. (3) The firm wishes to maintain a minimum cash balance of $30,300. (4) Accounts receivable represent approximately 19% of annual sales. (5) The firm's ending inventory will change directly with changes in sales in 2020. (6) A new machine costing $43, 100 will be purchased in 2020. Total depreciation for 2020 will be $16,900. (7) Accounts payable will change directly in response to changes in sales in 2020 (8) Taxes payable will equal one-fourth of the tax liability on the pro forma income statement. (9) Marketable securities, other current liabilities, long-term debt, and corrmon stock will remain unchanged. a. Prepare a pro forma income statement for the year ended December 31, 2020, using the percent-of-sales method. b. Prepare a pro forma balance sheet dated December 31, 2020, using the judgmental approach. c. Analyze these statements, and discuss the resulting external financing required. Pro Forma Income Statement Red Queen Restaurants for the Year Ended December 31, 2020 (percent-of-sales method) $ $ $ $ % Sales Less: Cost of goods sold Gross profits Less: Operating expenses Net profits before taxes Less: Taxes (rule = 40%) Net profits after taxes Less: Cash dividends $ $ $ $ To Retained earnings $
